Given the scenario described, if the market price of hammers increased from $9 to $13:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13.
A. producer surplus would increase for each producer.
B. producer surplus would increase only for House Depot.
C. producer surplus would remain unchanged for Bob's Hardware.
D. producer surplus would increase by $4 for Lace Hardware.
C. producer surplus would remain unchanged for Bob's Hardware.
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Of the following activities, specify which ones would typically generate positive externalities, negative externalities, or no externalities:
a. You decide to trade in your 1997 Cadillac for a 100% electric Nissan Leaf. b. Every morning while in the shower, you sing at the top of your lungs and very much off-key as long as no one else is at home. c. You choose to not clean up after your German Shepherd when you take him for his midnight walks around the neighborhood. d. After running out of space in your house, you decide to store your collection of 46 broken lawn mowers in your front yard. e. As you do every year, this year you get a flu shot at the local Walgreens.
At age 40, Joe is considering quitting his job and going back for a college degree. He needs two more years full-time. Tuition is $10,000 per year. He earns $30,000 per year. A college degree would raise his annual income by $10,000 per year. He will retire at age 70. Which of the following makes it less likely that Joe will decide to go back to college full-time?
A) The extra income due to a college degree rises. B) The rate of interest decreases. C) The government enacts mandatory retirement at age 60. D) Tuition decreases.